Tongyuan Petroleum's "20cm" hits the daily limit! Oil and gas stocks surge across the board, with major funds rushing in early trading exposed

Oil and gas sector surges across the board.

On the morning of March 2, influenced by turmoil in the Middle East, Asian stock markets generally declined. The three major A-share indices fluctuated early, with the Shanghai Composite Index dropping over 0.7% at one point, closing near flat at midday; the Shenzhen Component Index fell over 1.4% at one point, closing down 0.75%; the ChiNext Index declined 0.78%, and the CSI 50 Index dropped 4.17%. Market half-day turnover reached 20.902 trillion yuan, an increase of 4.936 trillion yuan from the previous day, with over 4,300 stocks declining across the market.

In the sector, driven by supply disruption fears, Brent crude oil opened sharply higher, and sectors such as oil and gas, gold, port shipping, and military equipment experienced explosive growth.

International crude oil prices gap up sharply

A-shares oil and gas sector hits multiple limit-ups

In the morning, the oil and gas sector saw a surge in limit-up stocks, with Tongyuan Petroleum (300164) hitting the limit-up, setting a new historical high. DeShihua, QianNeng Hengxin also hit the limit-up, as did Zhongman Petroleum, Zhunyou Shares, Shandong Molong, and Beiken Energy. China National Offshore Oil Corporation (CNOOC) and China Oil & Gas also led gains.

International oil prices opened high and then declined. Brent crude briefly surged above $82 per barrel in early trading but then fell below $77. NYMEX crude reached a high of $75 per barrel before falling back and briefly dropping below $70.

The US and Israel launched strikes on Iran, intensifying geopolitical conflicts, creating uncertainty in global oil supply. Real-time data from the international oil tanker flow monitoring system shows that ships near the Strait of Hormuz are generally moving at zero speed, indicating shipping has come to a halt in the region.

Barclays analysts warned in a recent report that with tightening supply, rising geopolitical risks, and increased market speculation, the oil market is highly sensitive. They believe Brent crude could rise to $100 per barrel.

Amid international turmoil and unstable oil supplies, OPEC issued a statement on March 1, announcing that eight major oil-producing countries (Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman) will increase production by 206,000 barrels per day in April. The statement said that given the current stable global economic outlook and low oil inventories, these countries will adjust production levels flexibly to maintain market stability.

According to Securities Times and Data Treasure, as of the latest close, the A-share oil and gas exploration sector has increased over 173% this year, with Pioneering Petroleum, Potential Energy, and Intercontinental Oil & Gas rising nearly 100%.

From a capital inflow perspective, nine oil and gas exploration stocks received increased financing this year, with Zhongman Petroleum, COSL, and Guanghui Energy seeing the largest increases at 261 million yuan, 205 million yuan, and 171 million yuan respectively. China Merchants Energy Shipping, Intercontinental Oil & Gas, and Xinjin Power also saw increases above 30 million yuan.

Early trading saw significant inflows of funds into the oil and gas exploration sector, with total net inflow exceeding 5.5 billion yuan. Among them, China Merchants Energy Shipping had a net inflow of 951 million yuan, ranking first; Tongyuan Petroleum saw over 700 million yuan; Guanghui Energy over 600 million yuan; COSL and Zhongman Petroleum each over 400 million yuan.

Middle East conflict escalates

Military sector soars

Aerospace and military stocks performed strongly during the session, with aerospace, large aircraft, and satellite internet sectors leading gains. Guanxiang Technology and Huaru Technology hit the limit-up, as did Tefa Information, Leike Defense, and Zhongtian Rocket. Unmanned aerial vehicles, Aerospace Nantian, Aerospace Huanyu, and Northern Long Dragon also surged.

Media reports indicate that recent conflicts in the Middle East have escalated, with the US and Israel conducting multiple military strikes on Iranian targets. Iran has responded with counterattacks and has blocked the Strait of Hormuz, significantly increasing regional conflict risks. Airports, ports, and military facilities in multiple countries have been affected, severely impacting civil aviation and energy transportation.

Galaxy Securities stated that escalating geopolitical risks will further strengthen expectations of steady military spending growth, with procurement likely to focus on main combat equipment, new domains, and new quality combat capabilities. Air defense, anti-missile systems, stealth countermeasures, precision-guided weapons, unmanned systems, and military informatization are expected to be key areas of investment.

Additionally, during the Two Sessions, the military sector also performed well. Over the past five years, the military industry index has typically outperformed the CSI 300 index before the sessions and underperformed afterward, showing a clear calendar effect. Galaxy Securities predicts that the Two Sessions will further emphasize independent innovation and emerging sector development in the military industry, providing clear policy guidance.

Data Treasure’s statistics based on the CSI Military Industry Index components show that this year, 15 concept stocks received financing inflows exceeding 1 billion yuan, including AVIC Optoelectronics, China Shipbuilding, AVIC Western Aircraft, Aero Engine Controls, and China Star Graph, each with over 300 million yuan in increased funding.

Looking at future growth potential, among stocks rated by three or more institutions, 19 concept stocks are forecasted to have net profit growth rates exceeding 20% in 2026 and 2027. Notably, China Star Graph, Xin Lei Neng, Chang Ying Tong, and two unmanned aerial vehicle stocks have high two-year average growth rates, all exceeding 100%.

(Source: Data Treasure)